3 2 mins 10 yrs

By 6:30 a.m., a full hour and a half before the store would open, about two dozen people were already in line. They waited patiently, not for the latest iPhone, but for something far more basic: groceries.

“Whatever I can get,” said Katherine Huga, 23, a mother of two, describing her shopping list. She gave a shrug of resignation. “You buy what they have.”

Venezuela is one of the world’s top oil producers at a time of soaring energy prices, yet shortages of staples like milk, meat and toilet paper are a chronic part of life here, often turning grocery shopping into a hit or miss proposition.

Some residents arrange their calendars around the once-a-week deliveries made to government-subsidized stores like this one, lining up before dawn to buy a single frozen chicken before the stock runs out. Or a couple of bags of flour. Or a bottle of cooking oil.

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So life is increasingly tough in Venezuela. Am I sympathetic? Not towards the many who chose to plunder their compatriots by voting for Hugo Chavez. Instead they’ve been plundered themselves, first by his regime’s currency debasement and then by the price controls which this prize buffoon is increasingly imposing. We can look on now, but don’t think it can’t happen here.

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3 thoughts on “THE EVILS OF PRICE CONTROLS

  1. Argentina is my personal fave.

    They essentially don’t allow imports of certain high value electronics and require manufacturers who wish to sell there to make them locally – in Tierra del Fuego.

    http://online.wsj.com/article/SB10001424052970204791104577108653947186174.html

    It is a kind of comedy, as if they don’t really want their economy to work.

    Brazil, Chile, Peru, and Colombia are on the right path, the rest of the continent is going nowhere fast.

  2. Of course, it did happen here, when Republican president Richard Nixon imposed wage and price controls.

    Hard to believe, but true.

  3. Hey phantom I remember Nixon’s wage & price controls. 1971-1973

    The company I worked for was ecstatic since they didn’t have to comply with the automatic wage increase they agreed to with our union.

    Fortunately, the wage & price freeze didn’t last as long as the mandated National 55 MPH speed limits on interstate highways in 1974 but weren’t officially lifted till 1995.

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